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How to Handle your Gender Pay Gap Effectively

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This article has been submitted by Croner

How to Handle your Gender Pay Gap Effectively: actors, broadcasters, presenters and other renowned talent at the BBC was met with a degree of hysteria from campaigners, industry figures, and especially those involved at the BBC.

Laura Sharratt, Croner Reward Sales Manager, says:

“Every organisation in the UK with more than 250 employees is required to publish their gender pay gap findings by April 2018, which means that these headline-hitting reports are only the beginning.”

Croner Reward, having advised on pay and benefits for over 40 years, recommend three steps for organisations to identify and handle their gender pay findings in the best and most beneficial way for business.”

1. Identifying the Gap

The first step for any qualifying organisation (those with over 250 employees) to take is to calculate their gender pay gap.

Even those with less than 250 employees should consider the benefits of reporting on gender pay, as this conveys a very proactive and ethical approach.

Pay gap figures are established by calculating the mean (average) and the median (the number which falls directly in the middle if all salary figures are placed in numerical order, lowest to highest).

Alternatively, Croner Reward offers a comprehensive Gender Pay Reporting solution which calculates and analyses an organisation’s gender pay gap. The solution also provides expert advice to explain any disparity, and offer next steps to address the matter.

2. Addressing the Gap

Once a gender pay gap has been identified, findings must be published on an organisation’s own website (somewhere publically accessible), and also on a sponsored government portal.

While the government is not currently intending penalising employers whose levels of compliance are not satisfactory, non-compliance would constitute an ‘unlawful act’ and fall within the existing enforcement powers of the Equality and Human Rights Commission, under the Equality Act 2010.

3. Taking Action on the Gap

The ideal situation for any employer is for the required calculations to unveil no gender pay gap within their organisation.

Unfortunately, this is not the case for a majority of employers.

Organisations who establish a Gender Pay Gap should consider a formal review of their pay structure or at the very least and organisation-wide salary benchmarking exercise to rectify the weaknesses that exist.

Croner Reward Findings

  • In 11% of the reports completed, we’ve reported a mean hourly pay rate where the gap is in favour of the female workforce.
  • In 16% of the reports completed we’ve reported a median hourly rate where the pay gap is in favour of the female workforce
  • We’ve seen in many cases that bonus gaps are heavily influenced by the number of males in the top pay quartiles compared to the number of females.

Gender Pay Gap: A Nation and Industry-wide Issue

The BBC report, published on 19th July, shed light on a very apparent gender pay gap between male and female stars who earn in excess of £150,000. Just two of the top 10 earners at the corporation are women, while 17 men make over £300,000 compared with seven women.

Following the news, Labour leader Jeremy Corbyn’s spokesman confirmed that his plan to cap high-earning public sector workers’ pay at 20 times the salary of the lowest paid in the same company would apply to the BBC.

The BBC has since responded, saying that the gap is complex and cannot be tackled overnight. More than 40 high profile, female TV personalities signed a strongly worded letter to BBC Director General Tony Hall, calling on him to “correct this disparity” which they state has been internally known “for years”.

A more recent study has also revealed a gender pay issue within the fashion industry, reporting that women are earning around 75% more than their male counterparts. The findings highlighted that women make up 9 out of the top 10 highest earning models in British fashion.

For further information about Croner Reward’s Gender Pay services click here.